Core Viewpoint - The report from Credit Lyonnais anticipates a robust performance for Tencent Holdings (00700) in Q3, with total revenue and adjusted EBIT expected to grow by 14% and 21% year-on-year, reaching RMB 190 billion and RMB 74.1 billion respectively [1] Group 1: Financial Performance - Total revenue is projected to increase by 14% year-on-year, reaching RMB 190 billion [1] - Adjusted EBIT is expected to grow by 21% year-on-year, amounting to RMB 74.1 billion [1] - Online gaming business is anticipated to grow by 18% year-on-year, with strong performances from titles like "Honor of Kings," "PUBG Mobile," "Delta Force," and "Clash Royale" potentially exceeding expectations [1] Group 2: Future Projections - The growth rate for high-margin advertising revenue has been revised upward to approximately 20% for 2025, leading to a 0.8% increase in adjusted net profit forecasts for Tencent for the fiscal years 2025 and 2026 [1] - Online advertising revenue is expected to benefit from upgrades in advertising technology and business transformation, with a year-on-year growth forecast of 20% [1] - The enterprise services sector is also projected to maintain over 20% year-on-year growth [1] Group 3: Business Resilience - The strong momentum in online gaming, advertising, and cloud services is expected to continue into Q4 2025, indicating resilience in these growth areas [1] - Tencent is identified as the largest beneficiary of AI applications, highlighting its strategic positioning in the market [1]

Core Viewpoint - Tencent's third-quarter revenue from gaming is expected to increase by 15% year-on-year for local income and 22% for international income, with online advertising revenue rising by 20% and financial technology and enterprise services revenue increasing by 10% [1] Revenue Expectations - Gaming business revenue is projected to grow 15% locally and 22% internationally [1] - Online advertising revenue is anticipated to rise by 20% [1] - Financial technology and enterprise services revenue is expected to increase by 10% [1] Profitability Projections - Gross margin for the third quarter and the full year is expected to be 56.4% and 56.3%, respectively, representing an increase of 330 and 340 basis points year-on-year [1] - Adjusted operating profit margin is projected to reach 37.2% for the third quarter and 37.3% for the full year, reflecting an increase of 59 and 132 basis points year-on-year [1] Investment Rating - The firm maintains a "Buy" rating on Tencent, raising the target price from 685 HKD to 780 HKD due to the company's ongoing progress in revenue growth and AI development [1]

Group 1 - Southbound funds net sold HKD 1.32 billion in Hong Kong stocks on July 23, with net purchases in China Life (HKD 665 million), SMIC (HKD 486 million), China Energy Construction (HKD 256 million), Alibaba (HKD 202 million), Pop Mart (HKD 173 million), and Dongfang Electric (HKD 170 million) [1] - Tencent Holdings saw a net sell of HKD 1.129 billion, Meituan-W HKD 1.021 billion, and Xiaomi Group-W HKD 983 million. Southbound funds have net bought SMIC for five consecutive days, totaling HKD 1.66206 billion, and China Life for two consecutive days, totaling HKD 1.54391 billion [2] Group 2 - China Life Group held a management meeting, reporting an increase in insurance coverage exceeding CNY 450 trillion, with claims of CNY 237.2 billion, a year-on-year growth of 14.7%. The group's total revenue grew by 8.4% year-on-year, and total assets surpassed CNY 8 trillion [4] - SMIC is expected to benefit from increased demand in the BCD Analog sector and improved wafer foundry capacity utilization in Q2 and the second half of the year, with a significant opportunity for domestic AI chip production [4] - China Energy Construction's new hydropower project on the Yarlung Tsangpo River has commenced, with an estimated investment of CNY 1.2 trillion, of which 60-70% will be allocated to project construction. The firm predicts a 20% growth in water conservancy investment by 2025, reflecting the government's strategic focus on water projects [5] Group 3 - Alibaba's Tongyi Qianwen has released a new code model, Qwen3-Coder, which surpasses global competitors in capability [6] - Tencent's target price was raised from HKD 634 to HKD 645, with expected revenue and gross profit growth of 12% and 17% year-on-year, respectively, for Q2 2025. Online gaming revenue is projected to grow by 18%, and online advertising revenue by 19%, indicating strong profitability improvements [6]

花旗称，腾讯一季度营收增长加速至13%，主要受益于国内和国际游戏以及线上广告的出色表现。将腾 讯目标价上调至695港元，并维持买入评级。分析师Alicia Yap在报告中表示，公司通过确保为游戏和广 告业务提供一个长的增长跑道，似乎已经明确了其稳健的发展策略来运营常青游戏大作，并培养广告主 的持续性小额广告支出。尽管利润和营收的增速差可能由于对AI的投资而收窄，但预计不会出现负的 运营杠杆。 ...

Core Viewpoint - Citigroup reports that Tencent's revenue growth accelerated to 13% in the first quarter, driven by strong performance in domestic and international gaming as well as online advertising [1] Group 1 - Tencent's revenue growth of 13% is a significant increase compared to previous quarters [1] - The growth is primarily attributed to the success of domestic and international gaming sectors [1] - Online advertising also contributed positively to Tencent's revenue performance [1] Group 2 - Citigroup has raised Tencent's target price to HKD 695 [1] - The investment bank maintains a "buy" rating for Tencent [1]